IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2023-05-26.html

Photovoltaic Power Plant Feasibility Study Based on Indonesia’s Renewable Energy Tariffs: A Study of Nusa Penida Solar Power Plant

Author

Listed:
  • Iswan Prahastono

    (PLN Research Institute, PT PLN (Persero), Jakarta, Indonesia,)

  • Hendry Timotiyas Paradongan

    (School of Business and Management, Bandung Institute of Technology, Bandung, Indonesia,)

  • Indra A. Aditya

    (PLN Research Institute, PT PLN (Persero), Jakarta, Indonesia,)

  • Kevin M. Banjarnahor

    (School of Electrical Engineering and Informatics, Bandung Institute of Technology, Bandung, Indonesia.)

  • Ngapuli Irmea Sinisuka

    (School of Electrical Engineering and Informatics, Bandung Institute of Technology, Bandung, Indonesia.)

Abstract

This study conducts feasibility study on 3.5 MW photovoltaic (PV) power plant in Nusa Penida based on Indonesia’s existing renewable energy tariffs. Three scenarios were developed utilizing RETScreen software, according to the power plant specification. Base case scenario was developed to determine the feasibility of the PV power plant based on independent power producer perspective. PLN scenario was developed to determine the feasibility of the PV power plant based on Indonesia’s state-owned electricity company. Clean-energy scenario was developed to determine the feasibility of the PV power plant if there was a $20/tCO2 emission reduction incentive in Indonesia. The base case scenario results showed that the existing PV tariffs for PV power plant project was not sufficient to make the project financially viable based on the IPPs perspective. The PLN scenario results showed that the PV power plant project is very profitable based on PLN perspective due to high cost-savings. The clean-energy scenario results showed that $20/tCO2 emission reduction incentive was sufficient to make the PV power plant project financially viable based on the IPPs perspective. Based on those results, this study recommends emission-reduction incentives as a mean of attracting more investors. This study also recommends PLN to utilize more PV power plant, especially if the region have high generation cost as a means to lower Indonesia’s energy cost thus making energy more accessible for everyone.

Suggested Citation

  • Iswan Prahastono & Hendry Timotiyas Paradongan & Indra A. Aditya & Kevin M. Banjarnahor & Ngapuli Irmea Sinisuka, 2023. "Photovoltaic Power Plant Feasibility Study Based on Indonesia’s Renewable Energy Tariffs: A Study of Nusa Penida Solar Power Plant," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 221-228, September.
    • Handle: RePEc:eco:journ2:2023-05-26
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/14659/7470
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/14659
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Al Garni, Hassan Z. & Awasthi, Anjali, 2017. "Solar PV power plant site selection using a GIS-AHP based approach with application in Saudi Arabia," Applied Energy, Elsevier, vol. 206(C), pages 1225-1240.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Cao, Xuwen & Li, Miao & Weng, Yangcui & Xie, Pu, 2026. "Hydrogen production through renewable energy and storage systems: Economic viability and market expansion," Renewable Energy, Elsevier, vol. 262(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Krishankumar, Raghunathan & Sundararajan, Dhruva & Ishizaka, Alessio & Ravichandran, Kattur Soundarapandian, 2025. "A double hierarchy fuzzy decision approach for solar farm ranking sites in India," Energy Economics, Elsevier, vol. 152(C).
    2. Elkadeem, M.R. & Younes, Ali & Sharshir, Swellam W. & Campana, Pietro Elia & Wang, Shaorong, 2021. "Sustainable siting and design optimization of hybrid renewable energy system: A geospatial multi-criteria analysis," Applied Energy, Elsevier, vol. 295(C).
    3. Al Garni, Hassan Z. & Awasthi, Anjali & Wright, David, 2019. "Optimal orientation angles for maximizing energy yield for solar PV in Saudi Arabia," Renewable Energy, Elsevier, vol. 133(C), pages 538-550.
    4. Haddad, Brahim & Díaz-Cuevas, Pilar & Ferreira, Paula & Djebli, Ahmed & Pérez, Juan Pedro, 2021. "Mapping concentrated solar power site suitability in Algeria," Renewable Energy, Elsevier, vol. 168(C), pages 838-853.
    5. Ayodele, T.R. & Ogunjuyigbe, A.S.O. & Odigie, O. & Munda, J.L., 2018. "A multi-criteria GIS based model for wind farm site selection using interval type-2 fuzzy analytic hierarchy process: The case study of Nigeria," Applied Energy, Elsevier, vol. 228(C), pages 1853-1869.
    6. Sahoo, Somadutta & Zuidema, Christian & van Stralen, Joost N.P. & Sijm, Jos & Faaij, André, 2022. "Detailed spatial analysis of renewables’ potential and heat: A study of Groningen Province in the northern Netherlands," Applied Energy, Elsevier, vol. 318(C).
    7. Efthymios Moutsiakis & Athena Yiannakou, 2023. "Small Hydroelectric Energy and Spatial Planning: A Methodology Introducing the Concept of Territorial Carrying Capacity," Sustainability, MDPI, vol. 15(6), pages 1-15, March.
    8. Moghadam, Saman Salehi & Gholamian, Mohammad Reza & Zahedi, Rahim & Shaqaqifar, Maziar, 2024. "Designing a multi-purpose network of sustainable and closed-loop renewable energy supply chain, considering reliability and circular economy," Applied Energy, Elsevier, vol. 369(C).
    9. Finn, Thomas & McKenzie, Paul, 2020. "A high-resolution suitability index for solar farm location in complex landscapes," Renewable Energy, Elsevier, vol. 158(C), pages 520-533.
    10. Sward, Jeffrey A. & Nilson, Roberta S. & Katkar, Venktesh V. & Stedman, Richard C. & Kay, David L. & Ifft, Jennifer E. & Zhang, K. Max, 2021. "Integrating social considerations in multicriteria decision analysis for utility-scale solar photovoltaic siting," Applied Energy, Elsevier, vol. 288(C).
    11. Zhao, Chengwei & Xu, Xuanhua & Liu, Ruihuan & He, Jishan, 2021. "A multi-aspect coordination HDRED site selection framework under multi-type heterogeneous environments," Renewable Energy, Elsevier, vol. 171(C), pages 833-848.
    12. Bijay Halder & Papiya Banik & Hussein Almohamad & Ahmed Abdullah Al Dughairi & Motrih Al-Mutiry & Haya Falah Al Shahrani & Hazem Ghassan Abdo, 2022. "Land Suitability Investigation for Solar Power Plant Using GIS, AHP and Multi-Criteria Decision Approach: A Case of Megacity Kolkata, West Bengal, India," Sustainability, MDPI, vol. 14(18), pages 1-21, September.
    13. V ctor Olivero-Ort z & Carlos Robles-Algar n & Julie Viloria-Porto, 2021. "An AHP-GIS Based Approach for Site Suitability Analysis of Solar-Wind Projects in Santa Marta, Colombia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 211-223.
    14. Dong, Fugui & Wang, Peijun & Li, Wanying, 2025. "Investment suitability assessment and multi-attribute decision-making research for wind-photovoltaic‑hydrogen-storage integrated project based on GIS and cloud weighted power Heronian mean operator," Applied Energy, Elsevier, vol. 401(PC).
    15. Kaiss, El-Cheikh Amer & Hassan, Noha M., 2024. "Optimizing the cleaning frequency of solar photovoltaic (PV) systems using numerical analysis and empirical models," Renewable Energy, Elsevier, vol. 228(C).
    16. Shen, Jie & Zheng, Fanghao & Tesema, Fiseha Berhanu & Deng, Wu & Bellotti, Anthony Graham & Xie, Jing, 2026. "Deep learning and explainable Artificial Intelligence for large-scale photovoltaic suitability analysis in Australian cities," Renewable Energy, Elsevier, vol. 259(C).
    17. Kim, Byungil & Han, SangUk & Heo, Jae & Jung, Jaehoon, 2020. "Proof-of-concept of a two-stage approach for selecting suitable slopes on a highway network for solar photovoltaic systems: A case study in South Korea," Renewable Energy, Elsevier, vol. 151(C), pages 366-377.
    18. Shriki, Noam & Rabinovici, Raul & Yahav, Kobi & Rubin, Ofir, 2023. "Prioritizing suitable locations for national-scale solar PV installations: Israel's site suitability analysis as a case study," Renewable Energy, Elsevier, vol. 205(C), pages 105-124.
    19. Ali, Shahid & Taweekun, Juntakan & Techato, Kuaanan & Waewsak, Jompob & Gyawali, Saroj, 2019. "GIS based site suitability assessment for wind and solar farms in Songkhla, Thailand," Renewable Energy, Elsevier, vol. 132(C), pages 1360-1372.
    20. Nima Mirzaei, 2022. "A Multicriteria Decision Framework for Solar Power Plant Location Selection Problem with Pythagorean Fuzzy Data: A Case Study on Green Energy in Turkey," Sustainability, MDPI, vol. 14(22), pages 1-18, November.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2023-05-26. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Monica Sinhat (email available below). General contact details of provider: https://econjournals.com/index.php/ijeep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.